FARMERS’ INVOLVEMENT IN CAPITAL MARKETS INVESTMENT AS AN ALTERNATIVE SOURCE OF FUNDING FOR AGRICULTURE IN ONDO STATE, NIGERIAFasina, O.O.

Abstract

Farming in Nigeria largely takes place in peasant and small scale physical labour-fed farms where productivity diminishes with age. Given depleting productivity accounted for by loss of agility due to advancement in age and general insufficiency of capital, avenues capable of sufficiently salvaging this dearth must, therefore, be explored. The study examined farmers’ involvement in the capital markets as an alternative funding source for agricultural activities in Ondo State of Nigeria. It specifically examined farmers’ awareness of the capital markets as well as the influence of their socioeconomic characteristics on their involvement in the capital market. Using a random sampling technique, a well structured questionnaire was used to collect data from 90 farmers selected for the study. Descriptive statistics like frequency tables were used to present the results of the study while the chi square analysis was used to test the study hypothesis. Results revealed that majority of respondents were males (86.7%). Nearly all were married (96.6%) and above 40 years of age (84.4%). Majority (82.2%) had one form of formal education or the other. Those with farming experience over 10years were 63.3%. Only thirty six percent of the farmers were aware of capital markets investment while only 8% actually had investment in the capital markets. The study also found that agricultural extension services had never disseminated any information on the capital market. A major constraint to respondents’ investment was lack of adequate information. At p ≤ 0.05, chi square analysis revealed that age of the farmers, their level of education, farming experience and awareness of capital markets investment were significantly associated with their investment in the capital market. The study recommended that agricultural extension agents should be mobilised to develop and disseminate information on the capital markets to farmers. Stock brokers should also visit farmer groups for enlightenment campaigns.